‘Four more years’ of house shortages

‘Four more years’ of house shortages
Glenveagh Chief executive, Justin Bickle

Eamon Quinn

Glenveagh, the stockmarket-listed housebuilder, has predicted it will take four more years before new housing supply comes anywhere near catching up with demand, as it unveiled a major site acquisition in the Cork docklands for 1,000 new homes.

Speaking to reporters following its first AGM since it sold shares on the Irish Stock Exchange last October, the company reiterated forecasts that prices of starter homes will rise 5% a year.

That’s below the current double-digit price increases across the market because they take into account the huge house price hikes for second-time homes.

Chief executive Justin Bickle — one of the three principal founders of the property firm — estimated only 15,000 new homes would be built across the State, well short of the 35,000 needed to satisfy demand.

He hailed the current “very favourable” market conditions for housebuilders, telling shareholders it had surpassed its IPO pledge and plans to have 1,500 homes under construction by the end of the year.

Having spent over €400m since October’s market debut, it said it has all but completed the purchase of a 4.6-hectare site in the Cork docklands on which it plans to build 1,000 apartments.

It will pay “in excess of €15m” for the land and is satisfied it can deal with any potential contamination on the docklands site.

Once built, the apartments may be sold on to an institution for rental. Its major activities remain focused on the Dublin region but it said it will continue to seek land sites in Cork, Galway and Limerick, tapping €100m that remains in its acquisition chest.

Other new land sites acquired include a 16.2 hectare site of zoned land in the Dublin area for 400 homes at a price of over €20m; the purchase of a site for 700 homes, which is also located in Dublin, for over €9m; as well as a €60m purchase of the loans linked to a 2.44 hectare Castleforbes Business Park in the north docklands in Dublin for 650 units.

Mr Bickle said the firm had nothing to fear from any so-called tax to prevent land hoarding, as recommended by the IMF in a major report on Ireland this week.

At the AGM, a shareholder called for an external review of the share-based incentives available to the principal directors.

Debut earnings last March showed €47.5m costs of “the founder shares” set aside at the IPO for the three principals — CEO Mr Bickle; chairman John Mulcahy, a former senior Nama executive; and chief operating officer Stephen Garvey.

Mr Mulcahy told journalists the three principals had driven the foundation of the company. Shares in Glenveagh rose slightly yesterday, valuing it at just over €767m.

More on this topic

Over 270 apartments planned for former Cork convent site despite concern from localsOver 270 apartments planned for former Cork convent site despite concern from locals

Murphy ‘out of touch’ over co-livingMurphy ‘out of touch’ over co-living

Housing Minister denies co-living housing plan is 'out of touch'Housing Minister denies co-living housing plan is 'out of touch'

Eoghan Murphy hits out at critics of 'trendy' co-living suggestion for young peopleEoghan Murphy hits out at critics of 'trendy' co-living suggestion for young people

More in this Section

Not enough businesses signed up for post-Brexit paperwork, bosses warnNot enough businesses signed up for post-Brexit paperwork, bosses warn

Cork Chamber gets in summer spiritCork Chamber gets in summer spirit

Law firm Comyn Kelleher Tobin promotes three new partnersLaw firm Comyn Kelleher Tobin promotes three new partners

Shane Lowry’s sports agent Horizon also gets in the profits swingShane Lowry’s sports agent Horizon also gets in the profits swing


Lifestyle

Robert Plant and Saving Grace review: Top class ensemble made for a memorable night at the Everyman in Cork, writes Joe DermodyGig review: Robert Plant and Saving Grace at the Everyman

Kya deLongchamps is mesmerised by early French glass paperweightsIn a bubble: The glittering history of French glass paperweights

During my first pregnancy I developed a network of spider veins on my thighs. Even more appeared during my second pregnancy. What would you recommend?How do I deal with spider veins in pregnancy?

More From The Irish Examiner